Contact Information: Contact: Supertel Hospitality, Inc. Donavon A. Heimes (402) 371-2520 Email Contact
Supertel Hospitality, Inc. Announces Closing of Common Stock Offering
| Source: Supertel Hospitality, Inc.
NORFOLK, NE -- (MARKET WIRE) -- December 22, 2006 -- Supertel Hospitality, Inc. (NASDAQ : SPPR )
announced today that it has closed an underwritten public offering of
7,000,000 shares of common stock at a price to the public of $6.70 per
share. The underwriters have a 30 day over-allotment option to purchase up
to an additional 1,050,000 shares.
The proceeds of the offering, totaling approximately $43.8 million after
underwriting discounts and estimated costs and expenses, will primarily be
used to repay existing indebtedness and indebtedness anticipated to be
incurred in connection with the company's pending acquisition of hotels.
Robert W. Baird & Co., Incorporated was the lead managing underwriter for
the offering, JMP Securities, Ferris, Baker Watts, Incorporated, and
Anderson & Strudwick, Incorporated were co-managers. A copy of the final
prospectus related to the offering can be obtained by contacting Robert W.
Baird & Co., 777 E. Wisconsin Avenue, Milwaukee, WI 53202, Tel: (414)
765-3632.
A registration statement relating to these securities has been filed with
and declared effective by the Securities and Exchange Commission. The
offering was made only by means of a prospectus. This press release shall
not constitute an offer to sell or the solicitation of an offer to buy nor
shall there be any sale of these securities in any state in which such
offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state.
Supertel Hospitality, Inc. owns 86 hotels in 19 states. The company's
hotel portfolio includes Super 8, Comfort Inn/Comfort Suites, Hampton Inn,
Holiday Inn Express, Supertel Inn, Days Inn, Ramada Limited, Guest House
Inn, Sleep Inn and Savannah Suites.